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C O N F I D E N T I A L SAN JOSE 000297
E.O. 12958: DECL: 04/03/2019
TAGS: ECONPINRPRELXKOVIPBIDENJOSEPHPGOV
SUBJECT: VICE PRESIDENT BIDEN'S MARCH 30 MULTILATERAL
MEETING WITH CENTRAL AMERICAN LEADERS
Classified By: DCM Peter M. Brennan for reason 1.4 (d)
¶1. (U) March 30, 2009; 1045 am; San Jose, Costa Rica.
¶2. (U) Participants:
USG:
The Vice President
Ambassador Peter Cianchette
Anthony Blinken, NSA to the Vice President
Brian McKeon, Deputy NSA to the Vice President
Dan Restrepo, Senior Director, Western Hemisphere Affairs, NSC
Craig Kelly, PDAS WHA
Tim Lattimer (notetaker), Regional Environmental Officer,
Embassy San Jose
OTHER GOVERNMENTS:
Prime Minister Dean Barrow, Belize
President Oscar Arias, Costa Rica
President Antony Saca, El Salvador
President-elect Mauricio Funes, El Salvador
President Alvaro Colom, Guatemala
Vice President Aristides Mejia, Honduras
Vice ForMin Manuel Coronel, Nicaragua
President Martin Torrijos, Panama
¶1. (C) SUMMARY: Vice President Joseph R. Biden, Jr. met March
30 with Central American leaders at a pre-Summit of the
Americas gathering hosted by Costa Rican President Oscar
Arias. The Vice President stressed the Obama
Administration's commitment to building a &new U.S.
relationship8 with Latin America based on a renewed
partnership to meet common challenges, mutual respect, and
genuine consultation. He emphasized the USG's desire to
seize the opportunities presented by the international
economic crisis and to lay the foundations for short-term
recovery and long-term sustained economic growth. Central
American leaders welcomed the Obama Administration's show of
positive interest in the region and embraced Vice President
Biden's call for partnership and close coordination in
meeting the full scope of challenges, ranging from the
economic crisis to poverty reduction, law
enforcement/security, immigration, international financial
institutions, and energy and climate change. END SUMMARY.
---------------------------------------------
BIDEN: "NEW U.S.-LATIN AMERICAN RELATIONSHIP"
---------------------------------------------
¶2. (C) Following a brief introduction by President Arias,
Vice President Biden echoed Arias, suggestion that the
gathered leaders "look ahead" rather than behind in
considering how best to work together in addressing the host
of challenges the U.S. and the region face. He noted that
President Obama asked him to visit with leaders in the region
to listen to their concerns and to begin to develop a
coordinated approach. The Vice President stressed that he
did not come "with a plan for the hemisphere," but instead
came to begin working toward "a plan with the hemisphere."
Noting the "checkered U.S. history" in the region, he urged
Central American leaders to put aside their skepticism of
U.S. intentions and to engage in an honest dialogue about how
best to renew the U.S. partnership with the region.
¶3. (C) The Vice President recapped the Obama Administration's
"bold action" during its first 65 days to revive the U.S.
economy, including a USD 787 billion economic stimulus
package, USD 1 trillion for the troubled U.S. financial
sector, and a USD 3.8 trillion dollar budget proposal aimed
at re-setting the conditions for long-term growth,
particularly through investments in education, energy, and
health care. He also said the USG hopes to use a series of
upcoming international meetings (e.g., G20, Summit of the
Americas, and the G8) to secure coordinated approaches
internationally to key challenges, particularly in
kick-starting the flow of credit again in the financial
markets. The Vice President added that the U.S. will "lead
by the power of its example rather than the example of its
power" in addressing other issues, such as climate change,
food security, education, and immigration.
---------------------------------------------
EL SALVADOR (SACA): A "VERY DIFFERENT" CENTRAL AMERICA
---------------------------------------------
¶4. (C) Noting that the Vice President is visiting a "very
different Central America," outgoing El Salvadoran President
Antonio Saca touted his country's "free and transparent"
elections in March. He pointed to his administration's
efforts to ensure a smooth transition to the opposition
FMLN's winning candidate, President-elect Mauricio Funes, as
an example of El Salvador's maturing democracy. Saca said
that the presence of Central American leaders at this meeting
with Vice President Biden reflects their good will to work
with the Obama Administration toward a more hopeful future.
¶5. (C) Saca noted that, as Central America's principal trade
partner, the U.S. slowdown has already hit the region hard.
El Salvador saw remittances from the U.S. drop by 8-10
percent during the first two months of the year, along with
declines in key sectors such as tourism and construction.
Saca urged the U.S. to see the region's strategic importance
and to work toward legalizing the status of El Salvador's
more than 500,000 illegal residents in the U.S.
¶6. (C) He also urged U.S. support for boosting the resources
of international financial institutions (IFIs) such as the
World Bank and Inter-American Development Bank (IDB) to help
the region better cope with the "perfect storm" brought about
by the global financial crisis, energy challenges, and food
security. Noting the growing importance of free trade for
creating jobs and alleviating poverty in the region, Saca
encouraged U.S. ratification of the pending Colombian and
Panamanian trade deals.
---------------------------------------------
PANAMA: "NEW ERA" IN REGIONAL RELATIONS WITH THE US
---------------------------------------------
¶7. (C) President Martin Torrijos hailed a "new era in Central
American relations with the U.S." and suggested that the
current financial crisis offered an opportunity for stimulus
packages that could better enable the region to deal with
unemployment, poverty, food security, and energy problems.
He urged the U.S. to support re-capitalization of the Central
American Development Bank and the Central American Bank for
Economic Integration (BCIE) and to support greater
"flexibility" in the rules for IFIs so that they might help
the region better manage its various challenges (e.g., by
allowing more resources for government budget support).
¶8. (C) Citing progress in Panama, Colombia, and elsewhere in
the region on public security and narco-trafficking, Torrijos
stressed the importance of U.S. cooperation with the region
to find shared solutions. He expressed Panama's concern
about the global climate change issue and praised President
Obama,s decision to convene an April meeting of "major
economies" in Washington to address climate change.
---------------------------------------
GUATEMALA: LET'S AVOID A BROADER CRISIS
---------------------------------------
¶9. (C) President Alvaro Colom warned against allowing the
economic/energy/climate crisis to roll together into a
broader socio-political crisis. He said that Guatemala had
great hopes for the Obama Administration, particularly on
immigration issues and on law enforcement/security
cooperation. Colom stressed that USG support has been vital
to the GOG's recent successes in combating narco-traffickers
(e.g., last year's seizure of three times more illegal drugs
than the previous year) and in strengthening the judicial
sector (e.g., the recent arrest of four generals accused of
corruption). He highlighted the growing importance of free
trade to the region and called for U.S. ratification of the
pending Colombia and Panama trade pacts.
---------------------------------------------
BELIZE: A NEW U.S. "SINCERITY" TOWARD THE REGION
---------------------------------------------
¶10. (C) Prime Minister Dean Barrow said that VP Biden's
message offered "welcome reassurance" to the region and that
his "deft touch" reflected a "new U.S. sincerity" toward the
region. He urged U.S. support for recapitalizing the IDB so
that the region could better "help ourselves deal with this
crisis." Barrow said that Belize was particularly concerned
that the proposed "Levin Bill" would target Belize as a "tax
haven" despite the country's lack of bank secrecy laws and
its classification by the OECD as a "cooperating country."
He worried about Treasury Secretary Geithner's signals of
Administration support for the Levin Bill and the potential
for such legislation to "wreak havoc" on small economies,
such as Belize, that have developed their financial services
sectors to reduce their dependence on commodity exports.
--------------------------------------------- -
EL SALVADOR (FUNES): FINANCIAL CRISIS IS MOST URGENT
--------------------------------------------- -
¶11. (C) President-elect Mauricio Funes said that the
international financial crisis was the most urgent matter
affecting the region. He said that it could cascade into
declines in exports, remittances, tourism, and foreign direct
investment, thereby driving down individual incomes and
potentially reversing the region's hard-won gains in reducing
poverty. Funes called for regional cooperation and
"international solidarity," especially from the U.S., to
support the efforts of individual countries to cope with
these challenges. He said that the crisis offers a "unique
opportunity" for the U.S. and Central America to redefine
their relationship.
¶12. (C) Funes suggested that a new strategic agenda between
the U.S. and the region should include the following:
-- Regional security ("we will maintain continuity with the
region and the U.S.");
-- immigration (an "integral solution" is needed);
-- bilateral cooperation to deal with the financial crisis,
not just multilateral cooperation; and,
-- social cohesion (e.g., more USG support for strengthening
institutions and financial sector oversight).
--------------------------------------------- -
HONDURAS: RAISED HOPES, BUT RESTRAINED RHETORIC
--------------------------------------------- -
¶13. (C) Vice President Aristides Mejia said that President
Obama,s election raised the hopes and expectations of the
region, not just in the U.S. He hoped for Obama,s success
with his domestic agenda and in his engagement with the G20
and others to address the global financial crisis. Mejia
recalled that President Zelaya's December 2008 letter to then
President-elect Obama emphasized the importance of
"strengthening our diplomatic channels," mutual respect, and
"non-interference" in internal matters.
¶14. (C) Mejia ticked off the GOH's key concerns, as follows:
-- integral U.S. immigration reform;
-- free trade (it has helped create jobs and spur economic
activity);
-- Millennium Challenge Account (has greatly benefited
Honduras);
-- stronger regional integration;
-- cooperation on regional development banks (more money and
more favorable lending terms);
-- regional security (modify the Merida Initiative to fit the
needs of each country); and,
-- other issues such as UN reform, dialog with Venezuela and
Bolivia, and ending the U.S. embargo on trade with Cuba.
--------------------------------------------- -
NICARAGUA: "NEW DAY" (BUT OLD WORDS) FOR THE AMERICAS
--------------------------------------------- -
¶15. (C) Vice Minister of Foreign Affairs Manuel Coronel, who
spoke last as the lowest-ranking visitor in protocol order,
commended VP Biden's intent to "listen" and said that this
meeting signaled a "new day for the Americas." However,
Coronel said that Nicaragua wanted to convey the following
"common Central American points" as President Pro Tempore of
the Central American Integration System (SICA, in Spanish):
-- end interventionist tactics;
-- give more priority to spending on social needs, not just
commercial and mercantilist interests;
-- reform U.S. immigration;
-- meet the "Millennium Development Goal" of channeling 0.7
percent of GDP into official development assistance; and,
-- support recapitalization of the BCIE and the Central
American Development Bank.
¶16. (C) Coronel said that the region enjoyed good USG
cooperation on law enforcement issues. He urged U.S. support
for a three-year law enforcement and security plan put forth
by the Central American Commission on Security. Coronel also
suggested that firms exporting to the U.S. under CAFTA-DR are
among the "first and hardest hit" by the U.S. economic
slowdown. He hoped that the U.S. might support the creation
of mechanisms to help such firms better cope with the crisis.
-------------------------------------------
BIDEN RESPONDS: WE HEAR YOU, BUT BE PATIENT
-------------------------------------------
¶17. (C) VP Biden responded by commending the absence of
recriminations and acrimony in the statements offered by
Central American leaders. While sympathizing with the
genuine concerns offered by the Central Americans, he urged
them to be patient with the U.S., which, he said, faces
significant domestic challenges that limit the USG's ability
to respond. For example, he noted how politically difficult
it would be for the Obama Administration to put an end to
deportations or press for legalizing the status of illegal
immigrants at a time when Americans face rising unemployment,
falling incomes, and the loss of their homes.
¶18. (C) VP Biden said that the Treasury Department is looking
closely at calls to recapitalize the IDB and other IFIs. He
noted the IDB should use existing resources to lend to
countries hardest hit by the crisis. He noted that the IFIs
are high on the G20 agenda and reiterated the challenges
posed by a "very hostile domestic environment." The Vice
President added that the USG must also take a hard look at
how well IFIs have previously managed their funds.
¶19. (C) VP Biden offered to help Belize make its case to the
Treasury Department as to why it should not be rolled up into
U.S. or international efforts aimed at tax havens. Turning
to Panama, the Vice President offered encouragement that "we
can finish" the TPA, but urged the Panamanians to remain
patient as the Administration deals with the issue in the
U.S. Congress.
¶20. (C) On the Cuba issue, Vice President Biden said that
President Obama had offered a campaign promise of some
changes in U.S. policy toward Cuba, short of lifting the
embargo. Noting that democracy is our overall goal, he urged
the region to work with the U.S. to ensure that the Cuban
people can decide their own future when Cuba enters into its
"inevitable transition."
¶21. (C) Calling himself a "hard-eyed realist" who is
"genuinely optimistic" about the future, the Vice President
stressed the importance of the leaders being &honest with
each other8 about priorities. He noted that there were no
significant conflicts around the table; there were, of
course, disagreements, but they were not significant and
should be put in perspective. He cautioned against making
every issue (e.g., Cuba) a priority and stressed that
although the Obama Administration may not have "all the
answers," it has an "open mind" and a readiness to work with
the region on "our most urgent challenges." Vice President
Biden suggested that the measure of success in the region
will be not so much whether GDP growth increases, but whether
living standards rise for those in the middle and lower
economic classes.
-------------------------------
COSTA RICA: AID IS STILL NEEDED
-------------------------------
¶22. (C) In closing the meeting, President Arias urged the
U.S. to recalibrate its "trade, not aid" posture to one that
sees foreign aid as something that advances U.S. interests in
the region. He suggested that the upcoming meeting of G20
leaders should focus not only on multilateral assistance
through the IFIs, but also give greater attention to
bilateral assistance. Reprising one of his themes from the
bilateral meeting with the Vice President, Arias maintained
that a world that spends 13 times more per year on military
budgets than it does on official development assistance is
unable to adequately address poverty, disease, education,
environment (especially climate change), and the threats of
terrorism.
¶23. (U) The Office of the Vice President cleared this message.
WILSON